Stephen Budorick on secure facilities
From COPT Defense Properties (CDP) - Hoya Hotseat · · Hoya Capital
“Secure facilities are highly valuable. They're very difficult to get permission to build. They're difficult to achieve the construction. They're very expensive to build. It can take up to two years to get a SCIF approved and constructed. And once they are installed, they cannot be moved.”
On , Stephen Budorick, President, Chief Executive Officer & Trustee at COPT DEFENSE PROPERTIES, spoke about secure facilities during COPT Defense Properties (CDP) - Hoya Hotseat on Hoya Capital.
About Stephen Budorick
Stephen Budorick, President and CEO of COPT Defense Properties, has described the company as a specialized real estate investment trust (REIT) focused on serving U.S. government and defense-related tenants. He stated that over 90% of the company's assets support defense activities, with 197 of its 203 properties oriented to that segment. Budorick noted that 36% of the company's revenue comes from the U.S. government and 54% from defense contractors. He highlighted that the company's strategy involves investing in assets near priority defense missions, developing properties on a low-risk, often pre-leased basis, and holding them long-term. Budorick also emphasized that 45% of the company's employees hold the highest security credentials for operating secure facilities, and that secure facilities, once built, cannot be moved, contributing to tenant retention. Budorick has discussed the company's performance and financial position. He stated that COPT delivered six consecutive years of funds from operations (FFO) growth through the pandemic, inflation, and interest rate spikes. He said the company can self-fund $250 to $300 million in annual growth from free cash flow. In April 2025, Budorick described the company's stock at $26.30 as a "screaming value" with a 4.7% dividend and a price-to-FFO multiple of 10x, compared to a long-term average of 14x. He also noted that the company rebranded from Corporate Office Properties Trust to COPT Defense Properties in September 2024 to better reflect its portfolio. Budorick has stated that the company has no near-term plans for mergers and acquisitions, focusing instead on low-risk development.